Worksheets2.2 Credit cards review
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
What is the Annual Percentage Rate (APR)?
a)
a) The fee charged for transferring balances
b)
b) The interest rate charged on outstanding balances
c)
c) The amount of cash back offered for purchases
d)
d) The penalty for missed payments
2.
What is the grace period?
a)
a) The time between your credit limit and actual spending
b)
b) The period when you are charged a late fee
c)
c) The time between the end of a billing cycle and the due date to pay the bill
d)
d) The time before your credit score is updated
3.
What is the minimum payment?
a)
a) The maximum amount you can borrow on the card
b)
b) The amount you must pay to avoid interest charges
c)
c) The smallest amount you must pay each month to avoid late fees and penalties
d)
d) The total amount due on your credit card
4.
What is a credit limit?
a)
a) The maximum amount you can borrow on the card
b)
b) The minimum balance you must maintain
c)
c) The interest rate charged on your card balance
d)
d) The amount available after rewards are deducted
5.
What are rewards programs?
a)
a) Offers low introductory APRs
b)
b) Earn points, miles, or cash back on purchases
c)
c) Charge interest on outstanding balances
d)
d) Transfer balance from one card to another
6.
What is a balance transfer credit card?
a)
a) A card with a low credit limit
b)
b) A card offering low introductory APRs for transferring existing credit card debt
c)
c) A card used for earning rewards on purchases
d)
d) A card that requires a security deposit
7.
What is the snowball method of paying off debt?
a)
a) Paying off the highest interest rate balance first
b)
b) Paying off the largest debt first
c)
c) Paying off the lowest dollar amount balance first
d)
d) Making minimum payments on all debts
8.
What is the avalanche method of paying off debt?
a)
a) Paying off the lowest dollar amount balance first
b)
b) Paying off debts with the highest interest rate first
c)
c) Paying off only credit card debt
d)
d) Making minimum payments on all debts
9.
What is a secured credit card?
a)
a) A card that offers high rewards for purchases
b)
b) A card that requires a security deposit and helps build credit history
c)
c) A card with a high credit limit
d)
d) A card used only for transferring balances
10.
What is credit utilization?
a)
a) The percentage of your credit limit that you are using
b)
b) The total amount of debt you owe
c)
c) The minimum payment required each month
d)
d) The length of time you've had your credit card
11.
What is the credit score range?
a)
a) 200 to 900
b)
b) 100 to 800
c)
c) 300 to 850
d)
d) 400 to 950
12.
Which of the following is NOT one of the top three factors that determine your credit score?
a)
a) Payment history
b)
b) Credit utilization
c)
c) Length of credit history
d)
d) Age of the card issuer
13.
What is a credit bureau's main role?
a)
a) Providing credit card rewards
b)
b) Calculating credit card interest rates
c)
c) Tracking payment history and credit scores
d)
d) Setting credit limits for borrowers
14.
Why is it important to establish credit while you're young?
a)
a) Credit cards offer higher rewards for young cardholders
b)
b) Building a longer credit history positively affects your credit score
c)
c) Younger borrowers avoid late payment fees
d)
d) Secured credit cards are only available to young people
15.
What is the purpose of a credit score?
a)
a) To provide information on your income
b)
b) To evaluate how likely you are to pay your debts
c)
c) To determine your employment status
d)
d) To assess your education level
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